THE SALARIES of finance directors at UK-listed companies has risen by an average of 4.7% in the last year, according to research produced by the Incomes Data Services.
The study found that FDs of FTSE 100 companies now earn an average of £1.7m per annum, including salary, bonuses, share option profits and incentive payments.
The salary component of those earnings amounts to a median of £502,000 for FTSE 100 FDs, equating to a 3% increase on 2012.
AIM-listed companies, though, showed the steepest growth in FD salaries, with a typical rise of 5.9% over the last 12 months and average pay of £143,000, rising to £174,000 when bonuses and other incentives are taken into account.
Author of the report Nasreen Rahman said: "Finance directors now often have a lot more responsibility for commercial, strategic and regulatory issues, which was not always the case in the past."
"Listed companies are now finding that it can be difficult to find someone appropriate for their finance director positions, as there is a limited pool of candidates with the breadth of skills and experience now required for the role."
"This is pushing up the value of those that do have the qualities that businesses are looking for," Rahman added."This small, elite group can command very high salaries, which continue to grow."
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